The Indian stock market has seen a massive rise in retail participation over the last decade. Along with this boom came a new breed of market educators and social media influencers, commonly known as finfluencers. One such prominent name is Avadhut Sathe, founder of the Avadhut Sathe Trading Academy (ASTA).
Sathe built a powerful personal brand promising to turn ordinary retail investors into successful traders. However, a recent SEBI interim order, highlighted in an NDTV report, has brought his business model under intense scrutiny. The findings reveal a sharp contrast between the massive money earned by teaching trading and the actual trading performance of the academy itself.
Rise of Avadhut Sathe and ASTA
Avadhut Sathe started his trading academy in 2015 with the stated goal of providing structured trading education to retail investors. Over the years, ASTA grew rapidly, leveraging YouTube, Instagram, seminars, and motivational storytelling to attract aspiring traders.
Sathe projected himself as a disciplined trader and mentor, often showcasing success stories of students who claimed to have earned lakhs and even crores from trading. His social media presence grew exponentially, with hundreds of thousands of followers across platforms.
ASTA’s stated mission was ambitious: to help one lakh Indians become professional traders and build multi-crore portfolios by 2031. This vision helped the academy attract massive trust and financial commitment from retail participants.
₹600+ Crore Collected Through Trading Courses
According to SEBI’s findings quoted by NDTV, Avadhut Sathe Trading Academy collected around ₹601 crore from approximately 4.1 lakh individuals over the years.
The money came from various paid offerings, including:
- Basic trading courses
- Advanced strategy programs
- High-ticket mentorship plans
Some of these premium mentorship programs reportedly cost up to ₹6.75 lakh per participant, making ASTA one of the most expensive trading education businesses in India.
SEBI observed that the scale of revenue was unusually large for a purely “educational” setup, raising questions about the true nature of services being provided.
The Shocking Trading Reality: ₹6 Crore Loss
One of the most striking revelations in the NDTV report is that Sathe and ASTA themselves incurred trading losses of over ₹6 crore during recent financial years, particularly FY 2024–25.
This finding sharply contradicts the public image of consistent trading success projected through marketing material, testimonials, and promotional videos.
In simple terms:
- ₹600+ crore was earned by teaching trading
- ₹6+ crore was lost while actually trading
This gap became a central point in SEBI’s investigation, as it questioned whether the academy’s claims truly reflected market realities.
SEBI’s Key Findings Against ASTA
SEBI concluded that ASTA’s activities went far beyond basic financial education. The regulator found evidence suggesting that the academy was engaged in unregistered investment advisory services, which is a violation of securities regulations.
1. Real-Time Trade Recommendations
SEBI cited recordings and communication material where specific stocks were discussed with clear entry prices, targets, and stop-loss levels. Such actionable guidance qualifies as investment advice, not general education.
2. Misleading Success Stories
The regulator found that several success stories showcased by ASTA were misrepresented or exaggerated.
For example, a participant claimed to have earned ₹1 crore through trading, while SEBI’s verification showed actual profits of only ₹4.17 lakh.
3. Majority of Students Lost Money
SEBI analyzed trading data of 186 participants over six months and found:
- 65% of them incurred losses
- Total losses among these participants stood at ₹1.93 crore
This contradicted the academy’s marketing narrative that implied widespread profitability among students.
SEBI’s Interim Action
Based on its findings, SEBI issued an ex-parte interim order against Avadhut Sathe and ASTA. The key actions included:
- Impounding ₹546.16 crore, which SEBI termed as “unlawful gains”
- Barring Sathe and ASTA from accessing the securities market
- Freezing bank and demat accounts linked to the alleged violations
- Ordering removal of promotional material related to unregistered advisory activities
This action is among the largest crackdowns on a finfluencer-led trading education business in India.
ASTA’s Defense
Avadhut Sathe Trading Academy has denied all allegations. The academy claims that:
- It operates solely as an educational institution
- It does not provide personalized investment advice
- There is no clear regulatory framework governing trading education businesses in India
ASTA has stated its intention to challenge SEBI’s order legally, and the matter is expected to see further developments.
What This Case Means for Retail Investors
The Avadhut Sathe case serves as a powerful reminder for retail investors and aspiring traders.
Key lessons:
- Trading education does not guarantee trading profits
- High fees do not automatically mean high-quality or compliant services
- Always check whether a market educator is SEBI-registered if they provide stock-specific advice
- Be cautious of marketing that highlights only success stories while ignoring losses
A Turning Point for Finfluencer Regulation
This case marks a significant shift in how Indian regulators view the rapidly growing finfluencer ecosystem. SEBI has sent a clear message:
“Education cannot be a cover for unregistered investment advice.”
As retail participation continues to rise, stricter oversight may help protect investors from misleading claims and unrealistic expectations.
Final Thoughts
The story of ₹600 crore earned teaching trading and ₹6 crore lost doing it captures the risks of blindly trusting market influencers. While education is essential, transparency, regulation, and realistic expectations are equally important.
For investors, the safest strategy remains simple:
learn patiently, verify credentials, manage risk, and never confuse marketing with market reality.
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